Insurance

Facultative Reinsurance — Single Risk Certificate

Ceding a specific large commercial property risk on a facultative (case-by-case) basis.

Account NameTypeDebit ($)Credit ($)
Facultative Reinsurance Premium (Expense)Expense (+)8,000.00-
Reinsurance Payable (Facultative)Liability (+)-8,000.00

💡 Accountant's Note

Facultative reinsurance is placed risk-by-risk when the risk exceeds treaty limits or requires specialist reinsurer expertise. Each certificate is a separate contract, more expensive than treaty but provides targeted capacity.

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